Good morning, traders! We will analyze USD/CHF on the 8H Chart (it is not a very used timeframe, but it is handy) to show the current behavior and explain why we consider that this pair has upward potential in the short term.
🔸We see a clear transition from a downtrend to a potential uptrend.
🔸Price broke the bearish channel with solid momentum but had been consolidating ever since.
🔸It is a corrective movement of approximately 4 months, where we can draw two clear structures.
🔸We are now seeing a breakout of the second structure, which may lead to a bullish move towards the next resistance zone.
🔸The movement may be pretty aggressive, as it is normal for solid trends to come after large consolidations.
🔸We see a clear transition from a downtrend to a potential uptrend.
🔸Price broke the bearish channel with solid momentum but had been consolidating ever since.
🔸It is a corrective movement of approximately 4 months, where we can draw two clear structures.
🔸We are now seeing a breakout of the second structure, which may lead to a bullish move towards the next resistance zone.
🔸The movement may be pretty aggressive, as it is normal for solid trends to come after large consolidations.